Investment education not working for most staffers: Here's help
Just because staffers are reading the educational materials about their retirement plans, it doesn’t mean staffers are benefiting from those materials.
According to a recent John Hancock survey, 73% of employees use their companies’ educational materials to invest their 401(k) money, but only 15% of those employees found the materials helpful.
Moreover, the study found that 42% of defined-contribution participants said they have “little to no investment knowledge.”
If your employees are lacking knowledge, it could really affect their returns. Check out these findings — courtesy of DALBAR, a firm that provides ratings and ranking to the mutual fund, broker/dealer and banking industries:
From 1988 through 2008, the average equity investor earned 1.87% while the S&P 500 earned 8.41%.
Significance: Employees “missed” out on 6.54% of gains.
Solution: Look into getting independent investment advice for your employees from a registered advisor — one who doesn’t have any ties to the fund provider.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
White Papers
Provided by Anaplan
Further Reading
Now that you have a feel for what positions at your firm should be hybrid, you might be considering giving employees the ultimate work sche...
Finance rarely sees jury duty or bereavement as risk. They’re payroll line items. Until courts link them to USERRA military leave –...
Believe it or not, more than 80% of workers like their employers’ Paid Time Off (PTO) packages. But that doesn’t stop a surpris...
There’s no need to panic if you or one of your staffers discover they’ve made mistakes with your company’s 401(k) plan.&nb...
Employee experience – including employee mental health – has become a higher priority for many organizations, according to rese...
What company wouldn’t opt for an employee benefit that helps new families out and pays for itself in various ways? A recent report on...
